DoE takes final inputs on 2038 nuclear rollout

The Department of Energy (DoE) is taking final stakeholder inputs on its revised nuclear power tender framework, which targets the delivery of the country’s first nuclear generation capacity beginning in 2038.

The DoE said Monday it has given interested parties until 23 September to submit comments and recommendations on the proposed Nuclear Power Generation Capacity Tender Guidelines before the rules are finalized.

Revised draft

The revised draft incorporates inputs received during the 23 July consultation and lays down the proposed framework for the competitive tender, award, development, construction, licensing and commercial operation of the pioneer nuclear power plant and succeeding facilities.

Under the draft, nuclear capacity would be delivered in stages over 10 years from 2038 to 2047. The first tranche is targeted for delivery in 2038, followed by a second in 2040 and succeeding tranches through 2047.

The timetable is later than the government’s Philippine Energy Plan 2023-2050 Clean Energy Scenario, which envisions 1,200 megawatts (MW) of nuclear capacity by 2032, rising to 2,400 MW by 2035 and 4,800 MW by 2050.

The DoE may still revise the delivery schedule depending on grid studies, site selection, licensing pathways, market demand, technology readiness, investor feedback, and public consultation.

The draft also targets the tender proper in June 2027, followed by bid evaluation and endorsement through November. The notice or certificate of award is targeted for December 2027. The tender’s terms of reference and generic site selection parameters would be issued within six months of the circular’s effectivity.

Competitive mechanism

The framework is designed to provide nuclear developers with a competitive mechanism for securing long-term buyers for their output while establishing safeguards on pricing and consumer costs.

Awarded capacity may be allocated to distribution utilities and electric cooperatives, contracted bilaterally, or aggregated for industrial parks and economic zones.

The draft also allows other arrangements such as the Wholesale Electricity Spot Market, contracts-for-difference, capacity or reliability payments, tariff support, and government-backed offtake.

Any settlement mechanism affecting electricity rates or charges paid by consumers would remain subject to Energy Regulatory Commission (ERC) approval.

The ERC would also determine or approve the applicable nuclear tender threshold price, tariff range or pricing methodology, taking into account construction and financing costs, fuel and waste management, foreign exchange risks, reliability value and the impact on consumers.

Nuclear technologies

The tender could accommodate large-scale conventional reactors, small modular reactors, microreactors, floating nuclear power plants and other nuclear technologies recognized under applicable regulations.

Winning bidders would still have to secure the required nuclear safety, environmental, grid and other regulatory approvals before projects could proceed. An award under the tender would not automatically grant a license, permit, grid connection, sovereign guarantee or other government approval.

The proposed guidelines are intended to establish the country’s competitive procurement mechanism for the pioneer nuclear power plant and succeeding nuclear facilities as the government works toward introducing nuclear energy into the Philippine generation mix.